I lived in a college town and student rentals did very well as did STRs for parents coming in to visit their children.  

As a person who has lived most of my life in metro Detroit, all I will say is be very, very careful. 

I currently live in San Jose, CA. 

I know in your city of Denver you can't host unless you live on the property but of course there are ways around that. 

.: Quote from @Greg Scott: I rarely invest where I would want to live.  

I’d like to buy the place, renovate it, and then live in it for a few years as my primary while renting out the 2/1, and then ultimately selling or renting out the main house too. wondering what the best purchase strategy would be considering I don’t have the full purchase price in cash on hand?

It allows you to live in a home that meets your needs while offsetting mortgage expenses.

The vagrants were stripping these old warehouses of their copper and living in them.

Buy, even if you don't plan on staying in that 1st house in Cleveland permanently you can just use an FHA loan live there for a year and turn it into a rental afterwards.

Hi Evan,I would recommend annual rent increases that align with cost of living - assuming you are currently at or near market.Residents typically expect a small increase and it's better to do it each year, rather than getting behind and having to do a large increase all at once.